Sanlam targets 20+ acquisitions for 2012

Sanlam Private Wealth, the UK financial planning arm of South African financial services business Sanlam, has announced the acquisition of Worcester-based advisory firm English Mutual, its fourth confirmed purchase in the past three days.

The news follows Tuesday’s (7 August) announcement that Sanlam had acquired three advisory firms: Bristol-based The Oakdene Practice, Warrington-based Parkgate Financial Solutions and Devon-based Libra Associates.

Nigel Speirs, CEO of Sanlam Private Wealth and head of distribution for Sanlam UK, said the deals, which take the total number completed in 2012 to eight, represent a “stepping up” of Sanlam’s expansion strategy in the run up to the Retail Distribution Review.

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He also predicted the completion of another 10 to 15 before the end of the year.

While the 43 advisers at English Mutual will remain with the business, Sanlam confirmed the six advisers across the three other acquired entities plan to exit the industry before year’s end.

It added that the purchase of English Mutual will add some £400m in assets under influence, while the three smaller businesses will provide the company with £450,000 in yearly trail income and £75m in funds under investment. Sanlam previously managed around £650m.

The company also acquired approximately 8,000 names and addresses as part of these deals.

Mr Speirs said that the firm only considers acquisitions of client bases where each client would bring in at least £500 renewal income per year.

He said: “We have had enough enquiries from advisers looking to leave the industry to keep us busy. The leads either come to us direct because they know we are in the market, or they are introduced via brokers.”

Alex Morley, CEO of English Mutual said: “This is the perfect move for English Mutual. Our mission remains to create and deliver the finest financial services experience available to financial advisers and their clients in the United Kingdom.

“Becoming part of Sanlam will allow us to achieve just that. The adoption of the hybrid model under the English Mutual brand will generate huge efficiencies for both clients and advisers, making us, I believe, a natural home for those looking for a secure, motivating and transparent opportunity post RDR.”